Bitcoin has been able to regain some of its footings over the last 24 hours after it had fallen to the $18,000 level, taking the entire crypto market down with it. Now, as the Tuesday trading day opens, the digital asset has made its way above $19,000. But despite bitcoin looking to be forming support just above $19,200, questions still abound in the market if this is a false recovery.

Is The Onslaught Over?

Bitcoin’s move above $19,000 has been a 4% increase over the past 24 hours. Given the tendency of the market to form a takeout after such massive losses, the possibility that the downtrend is not over continues to loom over the market. 

However, in the one-week timeframe, the digital asset continues to point towards sell pressure. It is the same thing recorded in the 2020 market just before the bull rally. But it is important to note that the digital asset had gone through a full-blown bear market at that point, priming it for recovery.

This time around, bitcoin is still just entering its bear market phase, meaning that any buying pressure will not lead to significant growth. It was the case in the month of August, where even though accumulation trends had grown, bitcoin was still unable to break above $25,000.

BTC settles above $19,200 | Source: BTCUSD on TradingView.com

The market movements do point to the possibility of bitcoin forming a cycle bottom, which would mean that the buying pressure could be an indicator of a bull rally. But the market remains too volatile for a significant upwards swing.

Bitcoin In The Weeds

There is still a lot of strong sentiment surrounding the fact that bitcoin has yet to reach its bottom. Most of these analyses are taken from previous bull and bear cycle trends where the digital asset had lost at least 80% of its value before starting on another bull market trend. Putting the bottom of the current bear market around the $12,000 price point.

Related Reading: Cardano (ADA) Price Fails To Break $0.5 Despite Vasil Hype

Chief Market Strategist at InTheMoneyStocks.com, Gareth Soloway, has also echoed this forecast. In a recent interview with Stansberry Research, Soloway explained that he expected the price of the digital asset to drop between $12,000-$13,000 before the bear market is over. The market strategist points to the dollar’s strength in recent times, which chases investors away from risk assets. “Every uptick in the dollar, you’ll see the opposite occurring in the Bitcoin chart,” Soloway said. 

Bitcoin’s price had dropped by about 85% from its all-time high after the last bull market of 2017-2018. It was a similar case after the 2013-2014 bull market. So given bitcoin’s likelihood to stick closely to historical patterns, Soloway’s prediction of a $12,000-$13,000 bottom price remains a viable forecast as it would constitute an around 85% drop from bitcoin’s all-time high of $69,000.

Featured image from CNBC, chart from TradingView.com

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Over the course of the week, the crypto market had succumbed to selling pressure. These sell-offs changed the trajectory of the market as many of the top cryptocurrency prices plunged. However, meme coin, Shiba Inu [SHIB]  may have “ignored” the ritual of following the Bitcoin [BTC] momentum. 

At press time, SHIB was 4.12% up in its token price. Against BTC and Ethereum [ETH], SHIB also gained in the last 24 hours. The cryptocurrency was up 6.94% against ETH while it rode up 4.09sb% against the king coin, BTC.

Inadequate strength

This SHIB momentum might come as a surprise to many crypto investors. This is because there has been massive liquidations across the crypto market since the price plunge began. As of 19 August, CoinGlass reported that there has been over $500 million liquidation with BTC and ETH traders being the most affected.

The liquidations have now reduced but are not all gone. CoinGlass data showed that the 24-hour “rekt” was around 4170.50 million at the time of this writing. However it may seem that SHIB did not form a significant part of the onslaught. Although it was not completely left out, it affected more traders in shorts positions than longs.

At press time, SHIB recorded $260,200 in total liquidations over the last twelve hours. However, from 19 August till this reporting period, it was $1.06 million.

This short-term success has also helped SHIB reclaim the twelfth position in market value as per CoinMarketCap. Additionally, the rally may align with the projection that SHIB could stay bullish for most of the coming week. But what else has influenced the SHIB uptick besides maneuvering the liquidation statistics?

Pumping?

Based on Santiment data, SHIB’s volume had increased after it plummeted between 15 August and 18 August. As of this writing, the volume was up to $944.84 million. Similarly, the active deposits on exchanges have increased and followed a similar momentum.

However, the Chaikin Money Flow (CMF) in green may disagree with the projection of a further uptick with the current SHIB momentum. With the value at -0.15, it seems that SHIB investors have been holding back on deploying more liquidity into its ecosystem. 

The volume was at a bearish position, although there were indications it could go higher but reaching the zero point looked challenging. As for the On-Balance Volume (OBV) in blue, it was in the upward direction. The value was 461.30 trillion with potential to hit $483.34 trillion that it was on 14 August.

 

Cardano (ADA) has been one of the most hardly hit cryptocurrencies during the latest market crash. It has so far lost over 60% of its all-time high, putting the majority of its investors right in the loss territory. The downtrend has been a cause for alarm among holders. But it looks like not everyone feels that way as some, mostly whales, have taken this as an opportunity to increase their holdings.

Whales Fill Up On ADA

A report from analysis firm Santiment shows a broad accumulation trend among whales when it comes to ADA. As the price of the digital asset had crumbled, big investors had ramped up their buying activity. One would think that with such value loss as that recorded by the cryptocurrency, whales with large holdings would dump their bags to save from further losses.

Related Reading | Anthony Scaramucci Urges Bitcoin Holders To Think Long-Term As Downtrend Won’t Last

Instead, these whales are taking this as a buying opportunity. The Sentiment report shows that the top ADA whales have all doubled their holdings in the past 10 days. In this time period, the price of Cardano’s native token ADA had lost about 34% of its value. Whale wallets holding between 10,000 and 1 million ADA have at least doubled their previous holdings since then.

In total, these whales have collectively bought over $53 million worth of ADA in a 10-day period. The average addition to their holdings comes out to around 113%, more than doubling the volume of ADA they control.

#Cardano‘s price, like many #altcoins, have plummeted in the past 10 days, dropping -34%. However, large addresses holding between 10k and 1M $ADA, own 113% more in their collective bags since the drop on January 17th, accumulating $53.6M in tokens. https://t.co/9V50jyrBlX pic.twitter.com/tQdwa7ym38

— Santiment (@santimentfeed) January 28, 2022

Cardano Holders Deep In The Red

Most Cardano holders remain firmly in the red, as represented by data from IntoTheBlock. The digital asset currently features one of the lowest profit rates of all the top cryptocurrencies with only 9% of holders said to be in profit.  A whopping 84% of all Cardano investors continue to struggle as their holdings are sitting firmly in loss, while only 7% are holding on in the neutral territory.

ADA trading a $1.02 | Source: ADAUSD on TradingView.com

The cryptocurrency had managed to hit a high above $3 in an impressive rally last year. However, it has been a sad story of dips and crashes since then that has shaved about $2 off of its all-time high value. Currently, the digital asset is still struggling in the market.

Related Reading | Tesla Report Shows Bitcoin Holdings Remain Unchanged At $1.2 Billion

The buys from Cardano whales have worked to the good for the asset but it is too soon to tell how long the stop-gap will hold. If whales continue their accumulation trend, and smaller investors follow in the footsteps of the whales, then a reversal could very well be in the works. However, with market sentiment firmly in the bearish territory, investors may be too wary to gamble on the smart contracts network.

Featured image from Nasdaq, chart from TradingView.com